Sentences with phrase «by subprime mortgage loans»

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The 2008 financial crisis, on the other hand, was triggered in part by subprime mortgages — essentially, loans given to homeowners unlikely to be able to pay them back — and investment vehicles based on them in which these toxic assets were bundled and often hidden.

He decreed that all mortgages packaged for repurchase by Fannie Mae must include subprime loans.

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A contrarian view is that Fannie Mae and Freddie Mac led the way to relaxed underwriting standards, starting in 1995, by advocating the use of easy - to - qualify automated underwriting and appraisal systems, by designing the no - down - payment products issued by lenders, by the promotion of thousands of small mortgage brokers, and by their close relationship to subprime loan aggregators such as Countrywide.

Subprime loans can help borrowers fix their credit scores, by using it to pay off other debts and then working towards making timely payments on the mortgage.

But by selling the subprime loans through the secondary mortgage market, the lenders were able to «offload» the risk associated with those loans.

The Housing and Economic Recovery Act of 2008, which was passed into law by Congress to address the subprime mortgage crisis, established the baseline loan limit of $ 417,000.

Money - market funds, which are big buyers of commercial paper, are spooked by possible contagion from subprime mortgages, or risky home loans granted to low - credit home buyers, and are shunning commercial paper backed by assets.

Al Bowman, president of Mortgage Commentary Services in Tampa, Fla., said he believes the resurrection of the «subprime mortgage market» (for those with poor to bad credit) is driven by rising property values and Wall Street's willingness to buy thMortgage Commentary Services in Tampa, Fla., said he believes the resurrection of the «subprime mortgage market» (for those with poor to bad credit) is driven by rising property values and Wall Street's willingness to buy thmortgage market» (for those with poor to bad credit) is driven by rising property values and Wall Street's willingness to buy the loans.

«Unlike the subprime loans of the past, we offer loan products not typically offered by banks but with reasonable mortgage rates and fees,» said Raymond Eshaghian, president and founder of GreenBox Loans in Los Angloans of the past, we offer loan products not typically offered by banks but with reasonable mortgage rates and fees,» said Raymond Eshaghian, president and founder of GreenBox Loans in Los AngLoans in Los Angeles.

Although FHA was caught unawares by a tremendous increase in its market share when subprime lending went south, it has made important strides in monitoring mortgage lenders and enforcing FHA guidelines for underwriting mortgage loans.

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With the recent problems suffered by subprime mortgage lenders, FHA loans are making a strong comeback as a useful alternative for first - time home buyers and home buyers with less than perfect credit.

Also, they didn't do any subprime lending, because they can't: the definition of a subprime loan is precisely a loan that doesn't meet the requirement, imposed by law, that Fannie and Freddie buy only mortgages issued to borrowers who made substantial down payments and carefully documented their income.

These banks oversaw the accounting wizardry that transformed Pittman's mortgage and thousands of other subprime loans into investments sought after by some of the world's biggest investors.

According to information released by BOA, the loan forgiveness program focuses on people who used subprime mortgages and option ARMs through Countrywide Home Loans.

Unfortunately, the lower scores of African Americans and Latinos are not a surprise, both because of the legacy of discrimination and because these groups have been disproportionately affected by predatory credit practices such as the marketing of subprime mortgages, overpriced auto loans as well as higher foreclosure rates, all of which damage their credit history.

For one thing, these groups are already disproportionately affected by predatory credit practices, such as the marketing of subprime mortgages and overpriced auto loans targeted at these populations.11 As a result, these groups have suffered higher foreclosure rates.12 African Americans and Latinos also suffer from disparities in health outcomes, and as discussed in Section IV of this testimony, health care bills are another source of black marks on credit reports.

«Many subprime loans during the housing bubble were made by nonbank mortgage brokers.

And, like subprime mortgages before the financial crisis, many subprime auto loans are bundled into complex bonds and sold as securities by banks to insurance companies, mutual funds and public pension funds — a process that creates ever - greater demand for loans.

But during the early and mid-2000s, high - risk, or «subprime,» mortgages were offered by lenders who repackaged these loans into securities.

The New York - based firm's credit funds rose as much as sixfold last year, helped by bets that rising defaults on subprime home loans would pummel the value of mortgage - backed securities.

The Credit Suisse plan would open the way for nearly 600,000 subprime borrowers, many of whom are delinquent on their mortgages, to refinance into loans backed by the FHA.

Through the second quarter of 2017, a tiny fraction (0.7 %) of all loans were purchased by private securitization companies.8 Prior to 2007, private securitization companies held $ 1.6 trillion in subprime and Alt - A (near prime) mortgages.

For example, an unsecured credit card typically carries more risk than a secured loan, so regulations tolerate much higher interest rates on unsecured credit cards than allowed even on subprime mortgages, which are backed by collateral.

Credit markets experienced a scare in the third quarter of last year when concerns about subprime mortgage defaults and writeoffs associated with securities backed by such loans roiled investors.

The study found that, thanks to aggressive tactics by subprime lenders who prey disproportionately on minority households unfamiliar with the financing system, one in five households with a subprime mortgage loan now face losing their home.

«We believe that the more prudent mortgage underwriting in Canada than in the United States, headlined by the very small number of subprime loans here, has prevented the stockpiling of high - risk mortgages by lenders,» states the report.

More than three times as many black households as white relied on subprime loans to buy their home in 2004, Home Mortgage Disclosure Act data collected by the Federal Reserve indicates.

Some predict that within the next several years, many residential mortgage REITs operating today — even some with little exposure to subprime loans — will disappear as a result of mergers, acquisitions, bankruptcy, or dissolution triggered by problems related to subprime loans.

By comparison, Canadian subprime loans account for about seven per cent of our total mortgage debt outstanding while U.S. subprime loans peaked at a little under 25 per cent of their total mortgage debt outstanding before their housing crash.

Thanks to aggressive tactics by subprime lenders who prey disproportionately on minority households unfamiliar with the financing system, one in five households with a subprime mortgage loan now face losing their home.

First, the market experienced a steady deterioration of credit standards in mortgage lending, particularly evidenced by the growth of subprime and Alt - A loans, which consumers were often unable or unwilling to repay.

Driven by Wall Street's demand for subprime loans to securitize and sell to investors, lenders sold high - risk products such as exploding adjustable - rate mortgages — loans with interest rates that could triple after two years — and liar loans, also known as stated income loans, which required little or no documentation about income, assets, or credit history.